The results provided by this calculator are for information purposes only and do not constitute legal or financial advice.
Borrowing capacity is the amount a household can borrow for a property purchase, given its income, current loans and the loan conditions (term and rate). In France, the High Council for Financial Stability (HCSF) recommends that the effort ratio — the share of income spent on repayments — stays below 35%, and that the loan term does not exceed 25 years, except in specific deferred cases.
First, the maximum affordable monthly payment is determined:
Maximum monthly payment = (monthly income + co-borrower income) × 35% − current loan repayments
This payment is then converted into borrowable capital. With a monthly rate r = annual rate / 100 / 12 and a number of payments n = term × 12, without insurance:
Borrowable capital = maximum monthly payment × [1 − (1 + r)−n] / r
When borrower insurance based on the initial capital is added (monthly insurance rate = annual rate / 100 / 12), the capital becomes:
Borrowable capital = maximum monthly payment / [ r / (1 − (1 + r)−n) + monthly insurance rate ]
The total budget adds the personal contribution to the borrowable capital, and the net purchase budget deducts notary fees and guarantee or arrangement fees: net purchase budget = borrowable capital + contribution − notary fees − other fees.
Existing monthly expenses (other than loans) are not deducted from the 35% base in this calculation: they nevertheless weigh on your real budget and should be factored into your project.
For a net income of 3,000 € per month, no current loan, a 20-year term, a 3.5% interest rate and 0.34% insurance:
The maximum monthly payment is 3,000 × 35% = 1,050 €. With r = 3.5% / 12 and n = 240 payments, the borrowable capital comes to about 172,600 € (insurance included). Without insurance, it would reach about 181,000 €.
This calculator gives an order of magnitude. Banks also consider disposable income, income stability, the change in housing cost and the down payment. Only a personalised study with a lender is binding.
